Hi
I would appreciate your help on this...
i got a letter from chase just before shabbos and this is what it said:
"B/c account recently went over credit limit [...] The default APR of 23.99% will be applied to all [...] future transactions."
Now...
I dont care
at all about the APR. I will just put the balance on another card or something like that. Even paying those rates isnt so far out of the question.
What i am worried about:
I have perfect credit except some high balances (which are short term).
1. Does this mean I defaulted? I went over my limit twice!
?? Now when they ask me if i've ever defaulted i have to say yes?!?! Or does it just mean that they raised my APR and thats it?
2. The letter is dated 1 day before my current billing period, and it says that the rate change will take effect at the end of my NEXT billing period (or to be specific the biggining of the following one).
A. If i pay the full balance before my statement posts, a little over a week, and then call and cancel, will that solve the whole thing? It didnt take effect yet...
B. Does it not matter that it didnt take effect yet?
C. Should I make sure to call
before my statement posts?
D. Or should i just call ASAP?!
3. Should I call to ask them to reconsider this action?
I have good arguments...
1. I was unaware that it was such a big deal to go over your credit limit! (its true! you just told me that the other day!
That was the old rule, nowadays if you use your limits that means you're in financial trouble and will get your cards closed by issuer!
). & I only have a 2 year credit history and I'm not so experienced with these things and i just didnt know it was an issue.
2. Chase even waived the fee the first time and made like it was no issue! They couldnt have given me some kind of warning that next time im totally screwed or something!?!?
3. When i went over the limit it was not by swiping, it was either finance charges or automated subscription things - again, i have a two year credit history, and it just took a couple times to realize that when youre maxed out the finance charges put you over every month.
And obviously its my fault and its not chase's responsibility to provide me with credit education etc...
A. Could it hurt to call? the letter said that i can reject this and they'll close my account and i can pay by my old terms. I dont want to do that -
I want to close my account. You think they might just close it or something if i call and ask not to raise my APR?
B. If i do, should i first pay off my full balance - or then is it more of a risk that they'll close it?
4. When i call to cancel and they ask why, should i say the APR increase and repeat my arguments or could they end up closing it and writing closed by issuer - would i be better off just to make no comment?
5. Is this not a big deal at all & im just making myself crazy?
what i've really learned is that if your going to play shtick with your cards and carry a balance etc., dont do it with companies you dont want to piss off like amex chase and citi (& fia?). I just opened a revolution card and a gap card...
I would really appreciate your help/input on all this - thanks very much